Spot biodiesel market trade has been thin as traders await clear policy direction regarding the Renewable Volume Obligation, hoping for an increase to 1.7 billion gallons in the biomass-based diesel mandate from what was proposed late last year.
"We've got a market pretty well clamped down" commented Pete Moss, analyst and president of Frazier Barnes and Associates, Memphis, Tenn. "They are wanting direction."
The Environmental Protection Agency has proposed this year's RVO at 1.28 billion gallons, but has yet to finalize the mandate despite being eight months late. By statute, the final RVO is due from the agency at the end of November the prior year, with the market now not expecting this year's mandate to be finalized until September.
Myke Feinman can be reached at email@example.com.
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